U.S. bankruptcy court denies crypto swindler’s $12.5m escape hatch
A Texas bankruptcy court has slammed the door on Nathan Fuller, denying his discharge in a landmark move. His attempt to use Chapter 7 to erase debts from an exposed crypto Ponzi scheme backfired, setting a powerful precedent.
- A Texas bankruptcy court denied Nathan Fuller’s bid to discharge $12.5M in debts tied to his crypto Ponzi scheme.
- The U.S. Trustee Program found Fuller hid assets, falsified records, and lied under oath to evade creditors.
- Fuller admitted Privvy Investments was a Ponzi, with investor funds diverted to luxury goods, gambling, and a $1 million home.
According to a press release dated Sept. 10, the U.S. Trustee Program (USTP) secured a default judgment from the Bankruptcy Court for the Southern District of Texas on Aug. 1 against Nathan Fuller.
The ruling, following a litany of misconduct, blocks Fuller from discharging more than $12.5 million in debt owed to creditors, primarily investors he defrauded through his crypto venture, Privvy Investments LLC.
Per the statement, the court found that Fuller systematically concealed assets, failed to keep financial records, and repeatedly lied under oath in a brazen attempt to abuse the Chapter 7 process.
Fuller’s pattern of deceit and its consequences
Fuller’s journey to bankruptcy began in October 2024, a strategic move that came only after a Texas state court appointed a receiver to seize his assets in response to a lawsuit from defrauded investors. The USTP’s Houston office swiftly intervened, filing a complaint that portrayed a debtor acting in flagrant bad faith.
Notably, the investigation alleged a comprehensive effort to obstruct justice. Fuller was accused of concealing extensive assets, a fundamental bankruptcy violation. He also failed to maintain financial records, making it impossible to trace the flow of investor capital.
The case’s turning point came when the court held Fuller in civil contempt for refusing to comply with its orders. Facing escalating penalties, his defense collapsed. He formally admitted that Privvy Investments was operated as a Ponzi scheme from the outset and that he had fabricated financial documents to lure and mislead investors.
He further confessed to giving false testimony and falsifying documents to hinder the Chapter 7 trustee’s efforts to untangle his finances. Investor funds, he revealed, were diverted not for trading but for a life of luxury, financing gambling excursions, high-end goods, and a nearly $1 million residence for his ex-wife, a business associate with whom he continued to reside.
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